Why Wall Street is wobbling on the GOP tax bill

The Senate passed its big tax bill. Why isn't the stock market going bananas?

New York Stock Exchange traders.
(Image credit: Spencer Platt/Getty Images)

The GOP's tax bill, which squeaked through the Senate 51-49 in the wee hours of Saturday morning, is supposed to be a boon for businesses. Stock markets were surging all year anticipating that it would become law, and hit new record highs on Monday. "With the great vote on Cutting Taxes, this could be a big day for the Stock Market — and YOU!" President Trump crowed from his Twitter feed.

But as the week wore on, the stock market cooled off. When it closed Thursday afternoon, the S&P 500 was down around 23 points (0.8 percent) from its Monday peak. The Dow Jones was down just over 280 points (1.6 percent), and the Nasdaq was down 79 points (1.1 percent). Corporate accountants and tax lawyers were gnashing their teeth.

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Jeff Spross

Jeff Spross was the economics and business correspondent at TheWeek.com. He was previously a reporter at ThinkProgress.